China offsets the bogan exodus

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By Leith van Onselen

Yesterday’s release of the overseas short-term arrivals and departures figures for September contained mixed news for Australia’s tourism industry, with both inbound and outbound tourists rising by 1.0% over to month to new annual highs.

However, the ratio of annual arrivals to departures fell to its lowest level since November 1985 (see below chart).

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In the 12 months to September 2013, the annual number of arrivals increased by 5.5% relative to the corresponding period of the prior year, whereas departures rose by 6.1% (see next chart).

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The year to September 2013 was a record for both inbound and outbound tourism. A record 6.39 million inbound tourists arrived in Australia over the year – a 37% increase on a decade ago (4.67 million). However, the number of Australians holidaying overseas also hit a record 8.57 million departures – a 160% increase on 10 years ago (3.29 million).

South East Asia (particularly Indonesia and Thailand) remains by far Australia’s favourite holiday destination, receiving a record 236,400 visitors in September, or 32% of Australia’s total departures over the month. This was followed by Oceania (20%), the Americas (13.5%), North East Asia and North West Europe (each 10%):

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Departures to the bogan hotspot of Bali (Indonesia) skyrocketed in September to a new record high, and remains by far Australia’s favourite single tourism destination:

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By contrast, the most foreign visitors to Australia came from NE Asia, which accounted for 26% of arrivals in September, followed by Oceania (20%). The surge in NE Asian arrivals has been driven by China, with a record 72,600 Chinese visiting Australia in September (13.3% of total intake), with visitor numbers rising by 8,000 or 12.4% over the month:

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unconventionaleconomist@hotmail.com

www.twitter.com/Leithvo

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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